There’s no such thing as “indie venture capital”—indie, is fundamentally incompatible with equity investment. https://ind.ie/manifesto
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Venture capital is the opposite of independence.
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@aral Do you think Buffer's approach is at least a little bit better? https://open.bufferapp.com/raising-3-5m-funding-valuation-term-sheet/ … -
@Cesc_Vilanova A little bit better ain’t gonna get us out of the mess we’re in in the long term. -
@aral Have you read the post? I think their approach is a step in the right direction. -
@Cesc_Vilanova I have.
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@aral I think it's how the VC game is played as well. Companies are being built to be sold, not make something sustainable. That's bad. -
@arielmichaeli That *is* the Venture Capital game. VCs invest in exits, not companies. That’s how they make their money back (when they do). -
@aral sad but true. There are other ways though, but they usually require more work so they're less used. -
@arielmichaeli Exactly. Hence I have nothing against revenue-based investment. -
@aral I think that's a healthy way of looking at it. Revenue/money isn't evil, people are.
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@aral Isn't there a 3rd way: incubated startups funded by mature co's not VCs? Eg@matrixdotorg is very indie, but sponsored by big telco(!) -
@ara4n Being sponsored by a big company is by definition not indie. +@matrixdotorg
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@aral I don't disagree, but some form of reliable alt funding is required - otherwise indie tech becomes the preserve of wealthy founders. -
@benwerd Bootstrapping, crowdfunding, and revenue-share financing all viable options. Especially latter. -
@aral Arguably a combination. Revenue-share financing is, in my experience, post-seed - usually need to show revenue traction first. - 1 more reply
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@aral you’re conflating VC / fund math with the mechanics of an equity investment. Eg. Crowd equity is still an equity investment. -
@bmann Core question that interests me: how do investors make their money back? Is it through the sale of the company. If yes, not indie. -
@aral of course. Just so many mechanics. Dividends, share of revenue, etc. can be built into equity ownership. Even loans / interest.
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@aral If ad funded freemium models did not suck out all the O2 there would be less need for VCs with 10X+ short term exit requirements.Thanks. Twitter will use this to make your timeline better. UndoUndo
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